By Paul A. Harris
Portland, Ore., Aug. 25 – American Media, Inc. has placed $670 million of notes in two tranches, according to market sources.
The deal included $136 million of 5˝% notes due Sept. 1, 2021, which priced at 73, and $534 million of zero-coupon notes due March 1, 2022, which priced at 42.75.
Prospect News reported some details of the issuance Wednesday.
J.P. Morgan Securities LLC managed the sale.
Proceeds will be used to refinance the AMO Escrow Corp./American Media Operations Inc. 11˝% first-lien senior secured notes due Dec. 15, 2017, and the American Media, Inc. 7% second-lien senior secured notes due July 15, 2020.
In a Wednesday press release American Media announced that it successfully completed the refinancing of its capital structure, achieving a $20 million reduction in its interest expense and extending the maturity on its debt through 2022.
The refinancing “provides the company with the liquidity and free cash flow to strategically compete in the new media landscape,” said David J. Pecker, chairman, president and chief executive officer, in the release.
New York-based American Media owns and operates the leading print and digital celebrity and active lifestyle media brands.
| Issuer: | American Media, Inc.
|
| Amount: | $670 million
|
| Securities: | Notes
|
| Manager: | J.P. Morgan Securities LLC
|
| Announcement date: | Aug. 24
|
| Distribution: | Rule 144A
|
|
|
| Notes due 2021
|
| Amount: | $136 million
|
| Maturity: | Sept. 1, 2021
|
| Coupon: | 5˝%
|
| Price: | 73
|
|
|
| Notes due 2022
|
| Amount: | $534 million
|
| Maturity | March 1, 2022
|
| Coupon: | 0%
|
| Price: | 42.75
|
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